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Money Rules - Investing Tips
Here's How Much Bitcoin You Should Own
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Hello everybody, welcome back to the channel where we talk about stuff. So here we are yet again with another interesting bit of news about the cryptocurrency space. So I understand that it can be quite overwhelming to always have an avalanche of good news, but I implore you please from time to time to try and absorb as much of it as you actually can. We have been hearing for years now, that was the camera once again, that institutions have been getting into the cryptocurrency space en masse.
I'm finding that for some reason a large number of people who are already in cryptocurrencies seem to not really understand the essence of what this all means and exactly how large it is to actually have these players officially being in the cryptocurrency space. Years ago we were told that because we were in the market, we were absolutely insane. That cryptocurrencies were only used by the worst people on the planet and then come to find out that nearly all the institutions and the millionaires and the billionaires had actually been lying. What? That's crazy! And basically told people not to get into crypto while they at the same time were actually buying up tons of Bitcoin in the background.
When you hear that a large company, asset manager, doesn't really matter, has just gotten into Bitcoin, I have always had the theory that rich people, it's not even a theory, it's just simply the truth, rich people know and talk to each other. When you hear that JP Morgan Chase and hundreds of banks around the world are actively trying to get into cryptocurrencies and also are buying Bitcoin because you as a bank cannot sell Bitcoin to your customer unless you have bought it. Yeah, that's how buying and selling actually works.
I talked to a lot of people about the ongoings of the cryptocurrency space and some of them are in the cryptocurrency market and I'm always bewildered by these people who, my personal opinion, who don't own any Bitcoin, who don't own any Ether, who don't own any XRP or simply believe that other coins will get them to where they actually need to go.
When you hear that there are larger banks getting into the space, understand that, this is not random or haphazard, they're doing this because they see the interest and they're trying to get into it as quick as possible and accumulate as much Bitcoin as they can because the circulations that we have been seeing from these institutions is that they actively believe and have stated amongst themselves and the news that we've gotten has also been like a drip from the heavens that someone actually leaked to us that they believe that Bitcoin at some point between the next two or three halvings, that is to say 2032 plus, is going to be over a million dollars per coin.
So when I heard, imagine stupid me, hearing that Fidelity and BlackRock who stood on the side for a while had actively announced that they were getting into the cryptocurrency space, I was like, I was like, hooray, finally people will begin to understand and really pay attention to what this all means. But alas, I know that there are some of you out there who have listened, I tip my hat to the simply because this is all getting a little bit insane. This is no longer like a wild, my opinion, like a wildly weirdly speculative thing. I think speculation kind of goes out the window when you have hundreds of banks who have actively announced that they're buying Bitcoin.
They have stated we want to be able to have the paperwork to be able to custody, buy, sell and hold cryptocurrencies for our clients. This means that they would be buying Bitcoin in order to sell to their clients to have inside of their portfolios. When you hear that BlackRock, the company that owns everything, is actively into Bitcoin and I see people still not paying attention, it's a bit annoying if I can be completely honest, just because along with my other theories, I have a really big one. The theory is all these banks and institutions are buying up massive amounts of Bitcoin every single day.
If we get to a point where Bitcoin is a million dollars per coin, think of how many, and I dare say this, normal people, everyday people would have benefited from accumulating that Bitcoin. But instead, it goes to the people who are the millionaires, who are the billionaires and who run the trillion dollar companies. Recently, BlackRock was just in the news because people found information about a document that was shared between people within BlackRock as to what they say is the optimal amount of Bitcoin to have in your portfolio if you have a riskier portfolio.
So understand, the idea is that if you have a low risk portfolio, you tend to have government bonds, you have long term stock companies that have been around for like 120 years, you get a good 2, 3, 4% return per year, maybe a little bit more, very low dividend numbers, but it's considered safe, especially government bonds. Mid-tier is if you find some companies who have been around for a good 5, 10, 15 years, you're betting really heavily that they're going to continue doing well as they've done only for the last decade and therefore you put your money into them.
There's usually some factors where you wake up and they're down by 8, 9, 10% off of some random news. The creme de la creme of risky, however, lies within the cryptocurrency space. If you are new here, let me be the first to tell you this market is absolutely insane. You will wake up some days and your portfolio will be down by 18% and you'll start questioning life. Other weeks, you'll look at your portfolio and you have tripled your money. That's just how the market works. It is still a brand new market. Bitcoin has only been around for around 14 years.
It is expected that by the 2030s, Bitcoin's price will have become stable in that any movements up or down would mimic that of the current US dollar and euro. That is to say, half a percent to 1% per day. There wouldn't be any crazy fluctuations, but more so a little like slight movements as we continue ticking forward. The idea of the asset allocation for this that BlackRock has stated. Roughly goes around the idea of a risky portfolio. That is to say a portfolio that is in the market that wishes to have the possibility of having higher returns because there is such a high level of risk.
I don't even know where to begin because this number is insane. This was stated by someone on Twitter who's very popular within the cryptocurrency space. His name is Michel van de Poepa. He wrote on Twitter on the piece of paper. Once again, this will also be in the description below. He said analysts at BlackRock have stated that an optimal risk portfolio, a risky portfolio, includes an allocation of 84% of just in Bitcoin. The document is titled Asset Allocation with Crypto, Application of Preferences for Positive Skewness revealed that BlackRock's recommended portfolio asset allocation is 84. 9% for Bitcoin.
According to BlackRock's findings, for a 60-40 portfolio, that is to say that is 60% of equities and 40% in bonds, the optimal allocation of Bitcoins, so sayeth BlackRock, is 84. 9%. The remaining 15% they have divided into equities and bonds on a 60-40 ratio. You got it right. 85% of the portfolio they're saying should be Bitcoin. The last 15% squished down, divide that and only that should be equities and bonds. I want the world to understand that I know that it won't happen overnight, but I hope that it happens eventually.
I think people hear news like this and not that it goes over their head, but it's more of a, what am I supposed to do with this information? I will try to say this in the nicest way possible and then we can definitely move on. Over the last seven or eight years that I've actively been within the cryptocurrency space, the coin that has remained the constant has been Bitcoin. Regardless of any other coin that people told me was going to outperform Bitcoin, go higher than Bitcoin, become the number one coin instead of Bitcoin, all of these coins have failed and or have never even gotten close to the top five, nonetheless number one.
I want to understand explicitly how you can hear news like this that usually ends up being leaked in some sort of way that we then end up receiving You can still be negative and or not believe and or not have any Bitcoin at all. It just doesn't add up a lot for me. I've mentioned to a lot of my friends to at least have a million Satoshis as the bare minimum so that you do have something. I last thought I think that when we get to the next crazy, insane, euphoric bull run, I think a lot of people are going to get it.
And what I stated this before and I think it takes is there a word for this? Like when things are out of reach, out of reach, not a word. I think it'll take that moment for people to really realize that they could have done something before and didn't prepare properly and that'll kind of switch on to them for or with Bitcoin. But yeah, just thought I'd make a little quick video. BlackRock has stated that they believe that an allocation of 84. 9, essentially 85 percent for your portfolio for a risky portfolio should have an allocation to Bitcoin, essentially meaning if you have 100K in a portfolio, 85 percent of it should actually be in Bitcoin as well.
Very interesting times ahead. I think that we are going to enter a world with a 15, 20 dollar XRP. We are going to see a 10 to 15 thousand dollar Ethereum and we are going to at some point see half a million dollar Bitcoin. And then I think we will have this conversation once again as to how people didn't see the writing on the wall. That's literally been there every single day on this channel and the other one. Yeah, I do hope that you have all enjoyed. I do hope you all are having a great day, great morning, great afternoon, a great evening, wherever you are, wherever the heck you might be.
I do hope it's absolutely fantastic. Thank you all once again for watching, listening, liking, commenting and or supporting. And I will most certainly be talking to you all soon. See you!.
S K R Y B O T
Skrybot. 2023, Video transcriptions from YouTube
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